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E.ON and Enel pioneer blockchain energy trading

A new experimental energy trading platform utilising blockchain technology was used for trades between utility giants E.ON and Enel this week, eliminating the need for a fee-charging central exchange or broker and thus reducing costs.

Many of Europe’s largest utilities and oil & gas companies are among the 33 organisations to have signed up to participate in the trial of the blockchain software, known as Enerchain, which allows wholesale power and gas to be traded directly between two parties in seconds.

“The aim... is to develop a decentralised European maketplace for energy trading. Today's first contract was a significant milestone on the way to achieving this goal,” E.ON says.

“Through direct trading... the costs of electricity procurement will be lowered: a cost reduction that will benefit energy customers in the future.”

“The Enerchain initiative is a good example of open, cross-industry collaboration,” says E.ON chief digital officer Matthew Timms. “We all believe in the enormous potential that Blockchain technology has for the new energy world and especially for our customers.”

Michael Merz, managing director of German IT specialist Ponton, which developed the software, told Bloomberg in May: “Some utilities are taking part because they just want to test how blockchain works, others really want to find out whether it will pay off to use it in trading.”

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E.ON and Enel pioneer blockchain energy trading

A new experimental energy trading platform utilising blockchain technology was used for trades between utility giants E.ON and Enel this week, eliminating the need for a fee-charging central exchange or broker and thus reducing costs.

Many of Europe’s largest utilities and oil & gas companies are among the 33 organisations to have signed up to participate in the trial of the blockchain software, known as Enerchain, which allows wholesale power and gas to be traded directly between two parties in seconds.

“The aim... is to develop a decentralised European maketplace for energy trading. Today's first contract was a significant milestone on the way to achieving this goal,” E.ON says.

“Through direct trading... the costs of electricity procurement will be lowered: a cost reduction that will benefit energy customers in the future.”

“The Enerchain initiative is a good example of open, cross-industry collaboration,” says E.ON chief digital officer Matthew Timms. “We all believe in the enormous potential that Blockchain technology has for the new energy world and especially for our customers.”

Michael Merz, managing director of German IT specialist Ponton, which developed the software, told Bloomberg in May: “Some utilities are taking part because they just want to test how blockchain works, others really want to find out whether it will pay off to use it in trading.”